A finance journal published a study of whether the decision to invest in the sto
ID: 3200511 • Letter: A
Question
A finance journal published a study of whether the decision to invest in the stock market is dependent on IQ. Information on a sample of
153 comma 296153,296
adults living in Finland formed the database for the study. An IQ score(from a low score of 1 to a high score of 9) was determined for each Finnish citizen as well as whether or not the citizen invested in the stock market. The following table gives the number of Finnish citizens in each IQscore/investment category. Suppose one of the
153 comma 296153,296 citizens is selected at random. Complete parts a through f.
The Finnish investment and IQ data.
IQ Score
Invest in Market
No Investment
Totals
1
837
4,693
5,530
2
1,336
8,491
9,827
3
2,185
9,613
1,798
4
5,233
18,022
23,255
5
8,368
23,325
31,693
6
10,130
21,933
32,063
7
6,949
10,959
17,908
8
5,079
6,770
1,849
9
4,452
4,921
9,373
Totals
44,569
108,727
153,296
a. What is the probability that the Finnish citizen invests in the stock market?
b. What is the probability that the Finnish citizen has an IQ score of 6 or higher?
c. What is the probability that the Finnish citizen invests in the stock market and has an IQ score of 6 or
d. What is the probability that the Finnish citizen invests in the stock market or has an IQ score of 6 or higher?
e. What is the probability that the Finnish citizen does not invest in the stock market?
The probability is.... (Round to the nearest thousandth as needed.)
IQ Score
Invest in Market
No Investment
Totals
1
837
4,693
5,530
2
1,336
8,491
9,827
3
2,185
9,613
1,798
4
5,233
18,022
23,255
5
8,368
23,325
31,693
6
10,130
21,933
32,063
7
6,949
10,959
17,908
8
5,079
6,770
1,849
9
4,452
4,921
9,373
Totals
44,569
108,727
153,296
Explanation / Answer
So the answer is 0.29
IQ Score Invest in Market No Investment Totals Probability 1 837 4,693 5,530 0.151356239 2 1,336 8,491 9,827 0.135951969 3 2,185 9,613 11,798 0.185200882 4 5,233 18,022 23,255 0.225026876 5 8,368 23,325 31,693 0.264033067 6 10,130 21,933 32,063 0.315940492 7 6,949 10,959 17,908 0.388038865 8 5,079 6,770 11,849 0.428643767 9 4,452 4,921 9,373 0.474981329 Totals 44,569 108,727 153,296 0.29073818Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.